Things to consider when working with a third party distributor

Working with a third party distributor can be an easy way to get your products in front of a lot of people, quickly. It’s relatively hands off compared to self distributing, but it does bring its own challenges. 

In this article we’ll guide you through things to keep in mind as you start thinking about working with a distributor. We’ll cover:

• Getting your marketing & branding through to your end customer
• Setting delivery & quality assurance standards 
• Creating a contract that’s beneficial to both of you

Let’s jump in!

One of the main benefits of working with a third party distributor is their ability to help you reach more customers, quickly. While your distributor should be able to grow your business through their contacts, it’s important to make sure your brand doesn’t get lost along the way. 

When you aren’t doing the selling yourself, you lose the personal relationships you would otherwise have with your customers. Create marketing assets with this in mind. Flyers, one pagers, and even can designs have the potential to get your story through to your end customer, despite lacking a direct relationship with them.  

When you are looking for a distributor to work with, consider what product knowledge and education you can provide them with to:

1. Set them up for success, and
2. Do your product justice

Even though you won’t be directly responsible for selling and delivering your products, you should do what you can to ensure your customers have a good experience with your company.

Setting expectations for deliveries from the start is a good idea. Ask your distributor about:

• How your product will be stored
• How your inventory will be managed
• Policies on handling product nearing expiration

Since beer is a spoilable product you want to ensure that it is being stored properly. Some keg tracking solutions can help you track this by monitoring keg temperatures and locations. Ensuring that your distributor uses a first in, first out inventory system is key too. 

To take it a step further, you could consider tracking lot numbers on your finished goods, so that if a customer does report a problem with one of your beers, you can easily recall the entire batch from any other customers, as well as your distributor.

If you’re new to the world of distributing your beer beyond your taproom, finding a distributor to work with can be overwhelming. 

Start by chatting with other breweries in your area. Find out what reputations different distributors have, not only with other local breweries, but also with retailers you hope to sell to. You don’t want to end up locked into a contract with a company that local retailers are hesitant to work with. 

Once you’ve narrowed it down, start thinking about what you’re looking for in a distributor. Here are some ideas to get you started:

• Goal alignment & metrics that the distributor will be able to share with you on a regular basis
• Willingness to use promotional materials as outlined by your team
• Expectations for delivery & storage processes for quality assurance
• Payment processes
• Establishing dedicated points of contact between your brewery and your distributor
• Cancellation terms

Put together a check list of what you need, and be sure to review your contract with a lawyer.

While working with a third party distributor can be fairly hands off compared to self distributing, there is still a lot to think about. By taking time to figure out your priorities and expectations, you increase your chance of building a mutually beneficial relationship with your distributor. And, you ensure that your distribution model does your product justice.

Interested in learning about how Brew Ninja can help with your chosen distribution model? Check out our 5 minute demo video, or get in touch with the team.